Access To Finance For Small and Medium Enterprises (SMEs)

Cambodian food hawker
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Access To Finance For Small and Medium Enterprises (SMEs)
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Financials
Corporate and Retail Banking
Business Model Description

Invest in microfinance institutions (MFIs) in Cambodia offering innovative financing solutions for SMEs, particularly in the agriculture sector

Many players have emerged in this segment to provide microfinance services (including, loans, deposits, money transfers, micro-insurance, payment services, payroll services, and international remittance services) to low-income population to improve their livelihood options and to MSMEs in the agriculture sector. Such players have been successful in attracting private investor interest, raising funds in the range of USD 3-25 mn.

Expected Impact

Affordable loans for SMEs' growth; economic growth; promote enterprise growth to reduce unemployment; financial inclusion of last mile businesses

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
15% - 20% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Industry, Innovation and Infrastructure (SDG 9) No Poverty (SDG 1)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Gender Equality (SDG 5) Decent Work and Economic Growth (SDG 8) Reduced Inequalities (SDG 10)
Sector Sources
  • (1) UNCDF. (2017). Cambodia Financial Inclusion Country Report 2017. https://finmark.org.za/system/documents/files/000/000/223/original/Cambodia_Synthesis-Note_28-September-2017.pdf?1601985666#:~:text=Cambodia%20has%20a%20moderate%20level,financial%20services%20through%20formal%20providers (2) UNCDF. (2020). Measuring Progress 2020: Financial Inclusion in selected ASEAN Countries. https://www.uncdf.org/article/7615/measuring-progress-2021-financial-inclusion-in-asean (3) Badzmierowski, B. (2022). Investing for a Purpose in Cambodia: Sevea and Boost Capital. https://cambodiainvestmentreview.com/2022/03/15/investing-for-a-purpose-in-cambodia-sevea-and-boost-capital/ (4) BD Trust. (2019). Financial Access for MSMEs. https://www.unescap.org/sites/default/files/Session%205%20Financial%20Access%20for%20MSMEs.pdf (5) Kwanchainond, K. (2010). Small and Medium Enterprises Development Policies in Cambodia. https://www.asean.org/wp-content/uploads/images/archive/documents/SME%20Development%20Policies%20in%204%20ASEAN%20Countries%20-%20Cambodia.pdf (6) Sok, S. (2022). 70 Percent of Cambodians Have Access to Financial Services. Khmer Times. https://www.khmertimeskh.com/501052053/70-percent-of-cambodians-have-access-to-financial-services/#:~:text=About%2070%20percent%20of%20Cambodians,Bank%20of%20Cambodia%20(NBC) (7) Seng, S. (2020). How Small Businesses Have Coped with the Impact of COVID-19. http://www.cweacambodia.org/en/news-update/227/how-small-businesses-have-coped-with-the-impact-of-covid-19 (8) Badzmierowski, B. (2022). Investing for a Purpose in Cambodia: Sevea and Boost Capital. https://cambodiainvestmentreview.com/2022/03/15/investing-for-a-purpose-in-cambodia-sevea-and-boost-capital/ (9) International Finance Corporation (2019). IFC Helps PPCBank Expand Lending to Smaller Businesses in Cambodia. https://pressroom.ifc.org/all/pages/PressDetail.aspx?ID=18479
IOA Sources
  • (1) UNCDF. (2017). Cambodia Financial Inclusion Country Report 2017. https://finmark.org.za/system/documents/files/000/000/223/original/Cambodia_Synthesis-Note_28-September-2017.pdf?1601985666#:~:text=Cambodia%20has%20a%20moderate%20level,financial%20services%20through%20formal%20providers (2) UNCDF. (2020). Measuring Progress 2020: Financial Inclusion in selected ASEAN Countries. https://www.uncdf.org/article/7615/measuring-progress-2021-financial-inclusion-in-asean (3) Badzmierowski, B. (2022). Investing for a Purpose in Cambodia: Sevea and Boost Capital. https://cambodiainvestmentreview.com/2022/03/15/investing-for-a-purpose-in-cambodia-sevea-and-boost-capital/ (4) BD Trust. (2019). Financial Access for MSMEs. https://www.unescap.org/sites/default/files/Session%205%20Financial%20Access%20for%20MSMEs.pdf (5) Kwanchainond, K. (2010). Small and Medium Enterprises Development Policies in Cambodia. https://www.asean.org/wp-content/uploads/images/archive/documents/SME%20Development%20Policies%20in%204%20ASEAN%20Countries%20-%20Cambodia.pdf (6) Sok, S. (2022). 70 Percent of Cambodians Have Access to Financial Services. Khmer Times. https://www.khmertimeskh.com/501052053/70-percent-of-cambodians-have-access-to-financial-services/#:~:text=About%2070%20percent%20of%20Cambodians,Bank%20of%20Cambodia%20(NBC) (7) Seng, S. (2020). How Small Businesses Have Coped with the Impact of COVID-19. http://www.cweacambodia.org/en/news-update/227/how-small-businesses-have-coped-with-the-impact-of-covid-19 (8) Badzmierowski, B. (2022). Investing for a Purpose in Cambodia: Sevea and Boost Capital. https://cambodiainvestmentreview.com/2022/03/15/investing-for-a-purpose-in-cambodia-sevea-and-boost-capital/ (9) International Finance Corporation (2019). IFC Helps PPCBank Expand Lending to Smaller Businesses in Cambodia. https://pressroom.ifc.org/all/pages/PressDetail.aspx?ID=18479